June 2, 2022

JMMB Group Limited (JMMBGL) for the year ended March 31, 2022, recorded net interest income of $11.58 billion, an 11% increase when compared with $10.46 billion recorded for the corresponding period in 2021. Interest income for the year amounted to $27.13 billion compared to $22.12 billion reported in 2021. Interest expenses increased 33% to total $15.56 billion relative to the $11.66 billion recorded for the same period in 2021. Net interest income for the quarter amounted to $2.59 billion, a 10% decrease when compared with the $2.88 billion recorded for the same period in 2021.

Fees earned from managing funds on behalf of clients amounted to $2.03 billion versus $1.49 billion recorded the prior year. Gains on securities trading climbed 8% to total $7.32 billion (2021: $6.79 billion).

Foreign exchange margins from cambio trading rose 34%, totalling $2.59 billion (2021: $1.93 billion). While, net income from financial assets at fair value through profit or loss (FVTPL) closed at $133.28 million relative to $47.09 million at the end of the 2021FY.

Operating revenue net of interest expenses amounted to $26.64 billion (2021: $22.44 billion), a growth of 19% year over year. Total other income amounted to $167.89 million from $178.44 million booked at the end of 2021FY, the following contributed to total other income;

• • Dividend income closed at $141.89 million (2021: $121.12 million), reflecting a 17% increase year over year.
  • Other income amounted $26 million (2021: $57.31 million) at the end of March 2022.

Staff costs recorded a 29% increase to $10.34 billion (2021: $8.01 billion), while other expenses closed at $8.17 billion (2021: $6.52 billion).

As a result, operating profit amounted to $8.30 billion, up 3% when compared to the $8.09 billion reported in 2021.

Impairment loss on financial assets decreased from $2.01 billion to $1.93 billion at the end of the 2022FY.

Gain on acquisition of associate was $4.63 million versus a loss on acquisition of associate of $8.19 million in 2021FY.

Share of profit of associated company amounted to $5.08 billion (2021: $1.88 billion). As such, JMMBGL recorded a profit before taxation of $11.45 billion, a 44% increase over the $7.96 billion recorded for the corresponding period in 2021. As for the quarter, profit before taxation closed at $1.38 billion (2021: $2.92 billion), a 53% decrease. Tax credit for the period amounted to $570.72 million, compared with a taxation of $242.20 million incurred in 2021.

Consequently, JMMBGL booked a 56% increase in net profit for the year to total $12.02 billion compared to $7.72 billion reported for 2021. Net profit for the quarter amounted to $3.19 billion, relative to the $3.70 billion reported for the same quarter of 2021.

Net profit attributable to the shareholders of the company totalled $11.44 billion relative to $7.51 billion in 2021, a 52% increase year over year. However, JMMBGL posted total comprehensive loss of $3.23 billion compared to an income of $20.52 billion in 2021.

As a result, earnings per share (EPS) for the financial year amounted to $5.85 (2021: $3.84), while EPS for the quarter amounted to $1.62 (2021: $1.87). The number of shares used in the calculations amounted to 1,955,552,532 units. Notably, JMMBGL’s stock price closed trading on June 1, 2022, at $46.50 at corresponding P/E at 7.95 times.

Balance Sheet at a glance:

Total assets as at March 31, 2022 amounted to $614.47 billion relative to $513.71 billion in 2021. The movement was due to an increase in ‘Investment securities’ to close at $332.08 billion (2021: $262.39 billion) and growth in ‘Loans and notes receivables’ which closed at $142.71 billion (2021: $119.46 billion). ‘Interest in associated companies’ also contributed to the increase in the asset base closing at $42.78 billion (2021: $38.93 billion).

Shareholders ‘equity totalled $54.93 billion (2021: $59.65 billion). As a result, book value per share stood at $28.09 (2021: $30.50).

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